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Before version 1.2, the XPS annotator was installed using the Windows Installer, and from version 1.20 until the present version (version 1.22) it is installed using Inno Setup.[4] The .exe files generated by the Inno Setup are compressed into ZIP format. There are two kinds of files contained in the zip file, the readme.html and the installer files in the form of .exe files.

Like PDF documents, Open XML Paper Specification (XPS) documents support the annotation feature,[6] however, the annotations features in XPS documents are still limited. XPS Annotator has the ability to add annotations to these XPS documents. These annotations can include many types of content such as typed text, handwritten notes, or Web links.

There are three options users can add: highlight annotations, text annotations and ink annotations.

XPS Annotator the capability to convert XPS documents to image files. XPS Annotator currently supports conversion of XPS documents into several popular image formats including PNG, JPEG, BMP, GIF and TIFF.[8]